What it means to have a Good Credit Score Rating?

What it means to have a good credit score rating?

Most people do not know what a good credit score rating can do for them. Just about everything you do in life, revolves around your credit score. Things that you do everyday can be based on whether or not and chief of you have a good credit score rating. Things such as renting a car or an apartment and obtaining credit with any department stores as well as banks, all depend on what your credit rating is.

A good credit score rating can determine if you get that dream job that you are trying to get or it can be the deciding factor in the home improvement loan you are applying for. It can also determine if you will get the loan needed for that new car you were looking at buying.  Your credit score is used both for and against you each and every day so you can see why it is important for you to try to keep a good credit score rating. There are many things that can affect your credit score, many of which most people are not aware of.

Each and every bill or utility that you pay each month can affect your credit score. If you pay it early, that is reflected and can raise your credit score. You will; show that you are reliable if you pay by your due date each month but if you pay late each month that is reported as well.  Late payments will reflect badly on your credit rating so you need to be sure to get those payments in on time if you want to keep your score up where it needs to be.

Regardless of what you have been thought a good credit score rating is not impossible to have. With some diligence and practice you can learn to curb your spending habits and create a spending budget that would work well for you.

What affects Credit Score Ratings?

What affects Credit Score Ratings?

Many people ask what affects credit score ratings. They want to make sure that they keep their credit score top notch, so if they need credit, they can easily get it. Your credit score rating is based on a variety of different variables. We will discuss some of the key factors that affect credit score ratings in this article.

When considering your credit rating, it is important that you realize  that things such as payment on time, credit inquiry etc. can have an impact on your credit score. When you make your payments on time, your credit score rating will improve. Anything positive, will not only help to maintain your current credit rating, but could also help to improve your score. However, when anything negative happens, points are deducted from your overall credit score. This could be as simple as making your home loan payment a few days late.  Therefore, it is important to make sure that you make all of your payments on time. If due to some reason you are unable to pay any of your creditors, your credit score will be negatively impacted.

In order to keep your credit rating in good standing, you should try to make sure that you do not use more than 25% of your available credit. Using more than 80% of your overall available credit line will begin to have a negative impact and your credit score will start to decline. Ideally, you should try to carry very low balances on credit cards and bills.

Your employment history will also have an impact on your credit score. Consumers who consistently maintain a job, are considered a better credit risk, rather than someone who is consistently switching jobs. Also, if you are without a job for a considerable amount of time, this could have a negative impact on your overall credit rating as well.

What affects credit rating can also be connected to foreclosures, bankruptcies and leans.  All three of these will have a negative impact on your overall credit score. If you are forced to file bankruptcy or allow your home to go into foreclosure, the negative impact on your credit rating will be a long lasting one.

Your credit rating can also be affected if you have too many credit inquiries. Therefore, if you are constantly applying for different credit cards your score can be quickly be lowered.

When wondering what affects credit rating, it is important to look at all aspects of your lifestyle. Many people do not understand that things such as employment history and credit inquiries can negatively impact their overall credit rating. However, on the other hand, there are some simple steps that can be taken to improve your overall credit rating or keep it in good shape such as paying your bills on time.  It is also important that you keep your credit score as high as possible. The more knowledge you have about what impacts your credit score rating, the easier it will be to maintain a high credit score.

FICO Credit Score

FICO Credit Score – What is FICO Credit Score?

One of the most important numbers in everyone’s life is undoubtedly their Fico credit scores. While you might have heard of it, you might not realize just how important it is. Some people disregard it and don’t worry about. However, when it comes time to borrow money, they are reminded of how important this number is to them. So what exactly are Fico credit scores and what do they do? Read what is a good credit score and how you can fix your credit score?

They are basically a score that Fico comes up with based on your credit history. While no one except Fair Isaac can tell you the exact formula, it is based on several critical factors. If you make late payments on your bills, it will be reflected in your score. If you default on a credit card or personal loan, your score will take a big hit. If you file bankruptcy, your score will be in shambles for quite a while. If you have too much debt, your score will be negatively affected.

Ideally, if you never make a late payment and have an average amount of debt, you will have a good credit score. According to Fair Isaacs, you can have Fico credit scores ranging from 300 to 850. A score of 850 means that you have perfect credit. A score of 300 means that you have terrible credit.

So what are Fico credit scores used for? The most common use of the score is when you try to get a loan for something; the lender will use them as an evaluation tool. If you have a high credit score, the lender will feel much more comfortable in giving you the loan. However, if you have a low credit score, the lender will probably steer clear of you. It’s been said that this score is one of the most critical factors in making a decision to loan money. Some lenders have set-in-stone guidelines that prevent them from lending to people with a certain score. If the person has a lower score than their guidelines allow, they simply reject the application.

These are used when you try to buy a house, a car, boat, or any other type of financing. Sometimes if you try to rent a property, the landlord will even want to see your credit score. This will give them an indication as to your payment history.

The effects that your score can have on you are vast. If you have a negative score, you will pay significantly more money than someone with a good score. The higher interest that you will be charged over the course of your life will amount to thousands of dollars.

Overall, Fico credit scores are a valuable tool for lenders. They enable them to sum up a life’s worth of credit into a simple number. While it isn’t the only factor that they use, it is one of the most important. This means that if you are a borrower, you want to pay close attention to your score. If you monitor it closely, you will have a much better time when you attempt to borrow.

Credit Cards for People With Bad Credit

How to Get a Credit Card With Bad Credit?

If your credit is not so perfect, you can get a credit card with bad credit. You will have to accept some certain circumstances into getting a credit card, such as having to pay a higher rate in order to get and keep the new credit card. Some lending companies make it possible for you to obtain a credit card even if you have bad or no credit at all. However, most lending companies only loan money to people with perfect or very good credit score.

It is possible for you to get a credit card even with bad credit, but your options are few. Lenders will usually make it possible for you to obtain a credit card. You can get a credit card with bad credit by getting a secured credit card. This is usually through a bank, with a bank account attached to them. This means that the lender deposits a loan amount into the account and you are expected to repay the loan back with high interest rates, this is called a high risk loan, which will remain high until the amount of the loan and the finance charges are paid off, then your credit will be lowered. This is one way to help repair your credit. Read how to improve your credit score and fix bad credit.

Many companies will help rebuild your credit rating by taking advantage of these high rates and epically the high finance charge that is attached to the loan. The high interest rates are usually anywhere from 10 to 20 percent above the others. But those who do obtain credit cards with bad credit, do get a credit card as long as they keep up their payments. Once the bill is paid off it will build your credit up. Do not over extend your credit card and put yourself in jeopardy of making your credit even in worse.

Most online credit companies will accept all applications and give an approval as soon in just a few seconds. The interest rates start as low as 9.75% APR. In addition to quick approval, these companies report monthly to all the major credit bureaus, ensuring that the cardholder payment history is added to his or her credit
profile.

Many of these credit card companies are very willing to help people with bad credit to rebuild their credit ratings. However if a person does over extend their credit card amount again there may be severe penalties that may have to be dealt with.

Once you get another credit card, be sure to pay at least the minimum required payment every month, to keep your credit in good standings. Keep in mind that when you pay more than the minimum payment your interest rates do not go as high.

While you are trying to build your credit with your new card do not forget to keep your other bills paid as well, non payment of these bills could cause another bad mark on your credit history.

Some people that have never had credit at all are considered a bad risk or considered as never having any credit which is just as bad, so these people that have never had credit are denied a credit card, simply because lenders want a person to have credit to get credit. Unwise thinking if you ask me, but that is the ways it’s done.

How to Fix Your Credit Score?

How to Fix Your Credit Score?

If your credit score is poor then it is necessary that you act and take steps to fix your credit score. If your credit score is bad then all is now lost. There are a number of things that you can do to fix your credit score. Here are a few things that you can start doing and improve your credit:

  • Pay Your Bills on Time
  • Keep Your Credit Card Balance as low as possible
  • Regularly Monitor Your Credit

Improving credit scores take time but there are a number of things you can do right now to start the process, like paying your bills on time and keeping your credit card balances as low as possible. Your credit score number is something that should be monitored and any incorrect information should be reported as soon as you are aware of the discrepancies, after all your financial well being depends on it.

Improving credit scores should be the first approach when looking to buy a home or open a line of credit. The problem with this is most consumers are unaware of what their credit score number is and how significant this number is to their financial well being. It has been reported that as high as twenty seven percent of consumers are unaware that a low credit score poses an enormous amount of financial risk to them.

Truthfully speaking, your credit score number or FICO score, is a number that is used by lenders to determine the financial risk you may pose to their company if you are being considered for a loan or a line of credit.

The national government appointed three companies referred to as the credit bureaus : Experian, TransUnion and Equifax, to determine your credit score by combining a number of factors. Some of these factors that go into determining your credit score are:

  1. You prior bill payment history.
  2. The length of time you have of established credit.
  3. The number of outstanding credit you have and your overall debt

Based on that ratio the credit bureau will then devise a number between 300 and 850, a credit score of 300 will be considered to be bad credit where a credit score of 850 is considered to be perfect.

Lenders will then look at this score and decide weather to approve you for a loan or not  based on this single number. Your credit score will determine the kind of loans you could be issued. If your credit score is higher than 700, you will be offered credit cards and loans with  low interest rates and of course, if your credit number is above 760 you will be offered the lowest rates available.

How to Improve Your Credit Score?

How to Improve Your Credit Score?

10 Ways to Repair a Bad Credit Score: If you have a bad credit score, it might seem that there is nothing you can do to improve it. With bad credit, you probably have to deal with high interest rates as well. Sadly, you probably aren’t getting approved for new loans that can help you improve your score. Fortunately, there are things you can do to repair a bad credit score. Read more about what is a good credit score?

Here are 10 ways to improve credit score that you can use to improve your credit score:

  • 1. Order credit reports. The first step in repairing your bad credit score is knowing what is on your reports. There are three major credit reporting agencies, so you should have three different credit reports to look over. Review all of the reports closely and check for any errors or false entries that aren’t yours. If you find any, report them to the correct agency so that they can be fixed.
  • 2. Know your credit rights. Before you contact the credit agency to dispute anything with them, it is best that you know what rights you have as a consumer. You have the right to demand the agency to remove any false or incomplete entries on your credit reports. Under law, the credit agencies have to remove them. This is where a little bit of research comes handy.
  • 3. Taking action. When you know what is on your reports, challenge any discrepancies that you find. Write a letter to each agency and tell them about any errors. Don’t be afraid to point out these errors. Though you’ve probably heard these agencies referred to as being “the credit police,” don’t sweat it. You have the right to a fair credit report.
  • 4. Monitor and wait. Once you send the letters about the conflicts on your reports, you have to wait a little for the agencies to verify any errors. If you are successful and proving the errors, they are taken off.
  • 5. Pay all of your bills on time. While waiting for any type of conflicts to be resolved on your credit reports, make sure that you are keeping up with your bills. Pay your bills when they should be paid this is key if you are looking to repair a bad credit score.
  • 6. Maintain but don’t use. During this time, it is also a good idea to keep the credit cards you have, but don’t use them. Canceling a credit card doesn’t help repair your bad credit score.
  • 7. Extra payments. When you make extra payments on your loans, it shows that you are being a responsible borrower. This will help improve your credit score little by little.
  • 8. Pay off loans. If you are able to pay off any credit card loans, do it. This is another way to show that you are responsible enough to pay off loans that you owe. Use your credit card to pay small bills for things such as gas and groceries.
  • 9. Don’t continue to apply. Applying for more and more credit cards won’t help improve repair your bad credit card. If you are in need of a loan, shop for a loan before you apply for it.
  • 10. Wait. This is one of the easiest tips. When looking to repair a bad credit score, you have to wait. Your credit score won’t get better in days, weeks, or months. It takes time so you have to wait and be patient.

By using the above 10 tips you can improve your credit score significantly. So if you have a bad credit score then you don’t need to worry a lot. There are always some solutions for every problem.

600 Credit Score

600 Credit Score

A credit score of 600 is considered to be low, but it is not the lowest score by any standard. Credit scores can range anywhere from 300-800. Most people, at least 29% of the population have credit scores between 600-700, So you are not alone. Read more about what is a good credit score?

There are many reasons why people go into debt and have low credit scores, such as bad spending, a health crisis, late payment reporting etc. If you are looking to purchase a new home or rent an apartment or even purchase a new car and you have a 600 credit score it is highly recommended that you raise your credit score to achieve a lower interest rate. Lenders determine the amount of money they will extend to you for credit by your credit score.

Although your credit score can be slightly higher from the three different credit bureaus: Equifax, Experian and Trans Union,  implementing steps to improve it can only be beneficial to you in the long term.

Here are 5 easy steps to improve your credit score:

  1. The quickest way to improve a 600 credit score is to pay your current bills on time to avoid late payment charges. Just doing this step only can improve your score in as short a time as 60 to 90 days.
  2. Pay off current credit cards but keep the accounts open. Closing credit card accounts can actually lower your credit score.
  3. Do not over extend yourself on your lines of credit. Only buy what you can afford to pay off in 30 days.
  4. Request a free annual credit report, then dispute any discrepancies and monitor your credit report regularly.
  5. Pay off your current debt and stay in control of your spending. Budget yourself and set up a long term plan of getting yourself  out of debt.

By making these simple adjustments you can greatly improve a 600 credit score but It will take time and determination on your part. Implementing these steps will end up saving you a lot of money in the long term and your financial outlook will increase dramatically.